Franco-nevada Corporation · TSX:FNV
Franco-nevada — Investor Presentation (January 2009)
13 slides from Franco-nevada's investor presentation, Jan 21, 2009
Slide 1: Growing a High Margin Business with Acquisitions
Growing a High Margin Business with Acquisitions 21-January-2009 David Harquail - CEO Paul Brink - SVP Business Development Sharon Dowdall - Chief Legal Officer Alex Morrison - CFO
Slide 2: Cautionary Statement on forward-looking statements
Cautionary Statement on forward-looking statements Certain information contained in this Presentation, including our expectation of the level of annual royalty ounces to be received from the Palmarejo Royalty and the Gold Quarry Royalty and certain pro-forma financial information including expectati
Slide 3: Transaction Highlights
Transaction Highlights Transaction with Coeur d’Alene Mines Corporation (“Coeur”) for a Gold Royalty Stream on the Palmarejo Silver-Gold Project in Mexico Royalty Stream is the greater of: 50% of gold produced from the Palmarejo Property 50,000 ounces per annum beginning July 1, 2009 until 400,000 o
Slide 4: Palmarejo Property
Palmarejo Property Coeur acquired the Palmarejo project in December 2007 from Palmarejo Silver and Gold and Bolnisi Gold Source: Coeur Technical Report on Palmarejo – June 21, 2008 Royalty is applicable to the property as shown on the right, representing an area of approximately 29,000 acres Source:
Slide 5: Palmarejo Project
Palmarejo Project Project development is well advanced with crushing activities having commenced in December* Start-up scheduled for first quarter of 2009* Construction of combined open pit and U.G. mines with 6,250 tpd mill Source: Coeur – Dec 2008 Process by flotation & cyanide leach with CIL circ
Slide 6: Palmarejo Reserves and Resources
Palmarejo Reserves and Resources Proven and Probable Mineral Reserves – Palmarejo Average Grade (g/t) Contained Ounces Total Tonnes Au Ag Au Ag Proven 5,511,900 2.27 192.0 402,400 34,029,500 Probable 4,308,300 2.52 204.9 348,700 28,381,700 Total All 9,820,200 2.38 197.7 751,100 62,411,200 Total Rema
Slide 7: Palmarejo Production
Palmarejo Production Coeur forecasts*: Production of 5.3 million ounces silver & 72,000 ounces gold in 2009 Capacity for annual production of 9 million ounces of silver and 120,000 ounces gold 11 year mine life Source: Coeur – Dec, 2008 *Coeur Press Release January 21, 2009 7
Slide 8: Current Palmarejo Mine Plan
Current Palmarejo Mine Plan Current Mine Plan Feasibility Study Palmarejo Mine Plan Summary Current Mine Life (years) 11 9 Tonnes Milled – Open Pit 11.3 6.1 Average Grade (g/t) – Open Pit (Gold) 0.86 1.09 Average Grade (g/t) – Open Pit (Silver) 105.3 137.9 Tonnes Milled – Underground 8.6 3.7 Average
Slide 9: Palmarejo Exploration
Palmarejo Exploration Situated in the world class Sierra Madre Ag-Au belt Looking West Palmarejo is one of three large deposits identified on the property to-date; Palmarejo, Guadalupe and La Patria Coeur expects to convert some resources at Guadalupe and La Patria to reserves Additional exploration
Slide 10: "Gold Royalty Stream" - Attributes
“Gold Royalty Stream” - Attributes Franco-Nevada interest is secured by a pledge of shares of Coeur’s Mexican subsidiaries and the royalty is to be registered on the property Upside open to exploration discoveries with no royalty cap Downside protected in initial years with minimum 50,000 ounces per
Slide 11: Gold Quarry Royalty
Gold Quarry Royalty On Dec 29, 2008 Franco acquired the Gold Quarry Royalty (“GQ”) covering a portion of Newmont’s Carlin operations in Nevada for $103.5m Royalty supported by minimum annual royalty provisions. Based on historical reported payments, expectation is the royalty should pay on average g
Slide 12: Proforma Contributions
Proforma Contributions Annualized Proforma Estimate of Impact on Gold Revenues Franco-Nevada royalty revenues1 $144.8m Franco-Nevada gold only royalty revenues1 64.8m Estimated proforma GQ revenues2 9.9m Estimated proforma Palmarejo revenues3 24.8m Estimated proforma gold only royalty revenues $99.5
Slide 13: Growth and Security
Growth and Security Highlights of GQ and Palmarejo Transactions Both transactions are highly accretive to Franco-Nevada on all measures Adds substantially to growth profile with cash flow beginning in 2009 Both provide high degree of leverage to the gold price Both have downside protection with mini